The fact that the demand for luxury cars is elastic is not surprising because
A)the supply of luxury cars is inelastic.
B)there are few substitutes for true luxury cars.
C)luxury cars are primarily a "status symbol".
D)luxury cars are relatively expensive.

Question

Quizplus · Accepted Answer

The demand for luxury cars is considered elastic because they are relatively expensive, and consumers are more sensitive to price changes. When prices increase, demand decreases more significantly compared to less expensive, essential goods.

The Fact That the Demand for Luxury Cars Is Elastic